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Happy New Financial Year!

The super and the tax system is an ever-changing landscape and this year is no different. The article below summarises several changes taking effect in the new financial year.

Commonwealth Senior Health Card (CSHC) eligibility

One of the great things about a federal election is that it flushes out all sorts of promises from each party vying for the attention of voters. One of those was increasing the eligibility for the CSHC which is set to occur from 20th September 2022 and benefit up to 50,000 Australians.

A CSHC is a prized possession for self-funded retirees because it offers a range of concessions such access to the pharmaceutical benefits scheme, bulk billing for Dr visits and cheaper utility bills.

The card is issued by Centrelink to people over pension age who do not qualify due to their level of assets, but have an income that is below the required threshold (there is no asset test).

Family Situation


New threshold




Couple (combined)



Couple (separated by illness)



The two main ways to apply for the card are by visiting Centrelink or to go online and fill out the forms. The income test for the card will look at both your adjusted taxable income, and the deemed income from your account-based income streams.

In South Australia, Concession SA is responsible for administering the household concessions and will need to be contacted after your card is issued and updated with any changes to your circumstances (such as change of electricity provider).

Superannuation Guarantee (SG) increased from 10% to 10.5%

From the 1st July 2022 employers must increase the super contribution of their employees to 10.5%. This is good for employees as more money is being contributed into the low tax environment of super. However, some people may need to check the wording of their contact. If your contract states a ‘total package’ amount, you may have got an increase in SG but a decrease in your wage or salary to reflect the same total package. This SG increase is legislated to go up by 0.5% on the 1st of July each year until 2025 when it will reach 12%.

Income threshold for Super Guarantee contributions has been removed

Prior to the 1st July 2022 employers only had to pay the superannuation guarantee if their  employee earned over $450 for the month. This threshold has now been abolished and it is estimated this will mean 300,000 workers will be better off under the change

50% account-based pension drawdown extended for FY2023

The 50% reduction to the required minimum pension drawdown announced in March 2020 in response to the pandemic has been extended for 2022-2023.

Work test abolished for after-tax contributions for people aged 67-74

Previously individuals in this age group had to satisfy a work test to make an after-tax (non-concessional contribution) to super. This no longer applies, making it easier to contribute a lump sum from things such as an inheritance or asset sale into the tax-free environment of super. This change also allows for the opportunity for clients to consider a re-contribution strategy that your adviser can discuss in more detail. 

Downsizer eligibility reduced from age 65 to 60

This scheme allows you to put up to $300,000 into super from the proceeds of the sale of your principal place of residence, with additional criteria to be met. The reduction in age provides greater flexibility for people to downsize their home and contribute some of their built up equity to help fund their retirement. 



If you would like to discuss any of these changes in more detail, please contact your adviser.



Craig Kirkwood AFP® | M.FF

Authorised Representative (No 401525)

Financial Planner AFP® | M.FF | Authorised Representative No. 401525

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